NSW land tax thresholds for 2017

NSW land tax thresholds for 2017

21 February 2017

Land tax is a tax levied on the owners of land in New South Wales as at midnight on the 31 December of each year. Land tax applies to land regardless of whether income is earned from the land.

If you own any property in NSW that is not your principal place of residence as at midnight 31 December 2016, including a holiday house or unit, you may be liable to pay land tax. 

How is land tax calculated?

The amount of land tax payable depends on the combined value of any taxable land you own or have an interest in. The value of taxable land does not include any structures or improvements on the land such as a house. Any land you own outside of NSW is not subject to land tax in NSW, but may be subject to land tax in the relevant state or territory.

The NSW Office of State Revenue (OSR) uses land values supplied by the Valuer General, who values your land as at 1 July.

To determine the value of your land, the OSR add the land value for the current tax year and the land values for the previous two tax years to calculate the average land value.

Land tax thresholds for 2017

Land tax is calculated on the combined value of all taxable land you own above the threshold, which for 2017 has increased to $549,000.

The amount of tax payable is generally $100 plus 1.6 % of the land value between the threshold and the premium rate threshold ($3,357,000) and 2% thereafter. If the combined value of your land is equal to or below the threshold, no land tax is payable.

If land is owned by a trustee of a special trust the land tax threshold does not apply and land tax will be charged at a flat rate of 1.6% of the taxable value of the land up to the premium threshold, and 2% thereafter.

There are a number of exemption and concessions available.  For instance primary production land is exempt from land tax.

What should you do if you think you are liable for land tax?

If you own a property in NSW other than your principal place of residence and you think you may be liable for land tax, you need to register with the Office of State Revenue (OSR). You can complete the online registration form here or by phone on 1300 139 816.

If you have previously registered for land tax you don’t need to complete another registration.

For more information please contact your local Boyce accountant.

Source: Office of State Revenue


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